Takeda Pharmaceutical has agreed to a pay-for-performance deal in Europe for its expensive gene therapy used to treat a complication of Crohn's disease, according to Nikkei Asian Review.
Four things to know:
1. Takeda will adopt the value-based pricing model for Alofisel, approved by the European Medicines Agency in March. The drug has not been approved for use in the U.S.
2. Despite winning approval in Europe, the drug has been unable to secure tertiary approval, a term used to describe national-level payer coverage. As a result, Takeda is exploring alternative payment options.
3. Under the pricing arrangement, Takeda would reimburse part of all of the cost of the drug if patients don't see any improvement. The drugmaker is considering a similar pricing model for other high-priced drugs.
4. Alofisel, a four-vial treatment course, is expected to carry a price tag of $67,000.
Read the full report here.